A quick explanation on the difference between the Dow Jones industrial average and the Standard & Poor’s 500:

The Dow is an index of 30 stocks from large industrial companies. It is traditionally the benchmark for how the entire market is doing. It maintains separate indexes of transportation and utility companies.

S&P is a broader market measure with 500 stocks. It is weighted by market capitalization — the biggest companies affect the index most.

The Dow’s index is determined by adding up the prices of all 30 stocks, so the companies with the highest share prices, regardless of the number of shares outstanding and therefore market value, influence the index most.

A pair of local investment advisers say newcomers wanting to get a piece of the record-setting stock market action will do well if they diversify and stay with it for the long haul.

The Dow Jones industrial average crossed 15,000 for the first time Friday, and the Standard & Poor’s 500 index rose above 1,600. The S&P closed above 1,600. The Dow was up 142.38 points to close at 14,974 Friday.

Friday’s stock market surge was attributed to a strong jobs report and the unemployment rate falling to 7.5 percent.

Paul Schnitman, a local investment adviser for Plan Ahead Inc., said first quarter earnings reports also may have played a part even though several of the reports “weren’t all that great.”

“What happened was the analysts lowered their earnings expectations and so companies beat their earnings but not by very much and the revenue, they call that the top line, was light,” Schnitman said. “The earnings beat the estimates, but they were lowered estimates.”

And Friday’s news may make new investors plunge into the stock market.

“Whenever you have the market run up like this, everybody, the little guy especially, starts piling in,” he said. “There are a lot of people that are skeptical about this big run and I don’t know that it’s totally justifiable, and we’re bound to have a pullback, but I don’t think any pullback is going to be significant because there’s too much money wanting to get in the market.”

Schnitman predicted the market will do well the rest of the year, but Wall Street may not reflect what’s happening on Main Street.

“I think the rank-and-file Americans are not doing so hot and they’re still worried about their jobs, not as much as before, but they are still worried,” Schnitman said. “Unless that changes, then this market can’t keep going up like it has been. The faster it moves up, the faster it goes down.”

Nick Shepherd, a financial adviser for First Allied Securities, said the stock market news is great for local investors, the ones who stuck with long-term and diversified portfolios.

“Make sure your asset allocation is appropriate based on your specific needs,” he advised. “As far as today’s (Friday) rally absolutely, it was the jobs numbers, but as far as the past couple of years, it’s just a very slow gradual improvement overall with the economy.”

With unemployment inching down and the housing market showing signs of improvement, Shepherd said the recipe is right for an economic recovery.

“The Feds, as long as they keep pumping money into the market and with the bond buying program, things are working for people who are invested right now,” he said. He added those interested in putting money into the market should consult with an experienced financial adviser. “Everything seems to be lining up for a gradual improvement so I don’t see anything that would stop the rally.”

The question, however, is how to hold on to this improved market setting.

“Now is probably not the time to be just piling in, but if (the investor) is systematically buying in, that’s fine. The rank-and-file guy unfortunately doesn’t have enough information to play this game and it’s a little rigged,” Schnitman said. “It’s a little rigged because the big guys get a lot more information than the little guys.”